Joint Media Release with Senator the Hon Mark Arbib and The Hon Jason Clare MP
Deputy Prime Minister Julia Gillard today announced that the Rudd Government will invest $100 million in a new Apprentice Kickstart program to support up to 21,000 young Australians entering traditional trades this summer.
The new program comes as a result of the final Keep Australia Working Report released today, which included recent figures showing people starting trade apprenticeships had dropped by more than 20 per cent during the economic downturn compared to the same time last year.
To address this, the Rudd Government has fine-tuned the Jobs Fund stimulus measure to ensure that Australia continues to recruit and train apprentices in traditional trades and meets the potential skills shortage head on.
The Rudd Government is committed to building a better future for Australians and Australian businesses and providing more apprentices is a part of that commitment.
Ms Gillard today joined Local Jobs Champions Lindsay Fox and Bill Kelty to announce the plan to drive apprenticeships, which is the centrepiece of the final Keep Australia Working Report.
“The Government’s Apprentice Kickstart will more than triple the first year bonus paid to employers who take on traditional trades apprentices this summer,” Ms Gillard said.
“We’re boosting the commencement bonus from $1500 to $2350 and then following up with another $2500 at nine months which means employers will now receive $4,850 in the first year for taking on a traditional trade apprentice over the summer.
Family First Senator Steve Fielding was also on hand to offer his support to Apprentice Kickstart.
Apprentice Kickstart will be paid for as part of funding secured by both the Greens and Senator Fielding as part of the Government’s economic stimulus package.
The summer apprentices will also be among the first to undertake mandatory green skills as part of their training.
Minister for Employment Participation Mark Arbib said that in the past year traditional trades apprentice starts had dropped by about 10,000.
“We know that in the 1990s, apprentice commencements took a decade to bounce back to pre-recession levels,” Senator Arbib said.
“That created a skills shortage that held Australia back and we don’t want history to repeat itself.
“This bonus will fast-forward hiring decisions to bring apprentice numbers up to levels before the global recession. We need to prepare now for when the Australian economy recovers.”
The Apprenticeship Kickstart will be funded from the Government’s $650 million Jobs Fund and will be available to all employers who take on a traditional trade apprentice aged between 15 and 19 years.
Today’s funding boost brings to around $250 million in the level of additional support the Rudd Government is providing to apprentices.
The bonus will be available for apprentices who are hired between 1 December 2009 and 28 February 2010 or until 21,000 apprentices have commenced in traditional trades hardest hit by skills shortages identified on the National Skills Needs List.
This includes trades like butchers, bakers, bricklayers, carpenters, electricians, hairdressers and pastry cooks.
Parliamentary Secretary for Employment Jason Clare said as part of the $100 million Kickstart, the Government is also providing $20 million for pre-apprenticeship proposals.
“Pre-apprentices are a critical way of ensuring we get young people into trades,” Mr Clare said.
“The funding will be available for proposals from states working with industry and training organisations that will increase the flow of young people into the traditional trades.
“Up to 5,000 young people will be able to participate in these programs, teaching them the basics to fast-forward them into an apprenticeship.”
Ms Gillard also announced Round 2 of the Jobs Fund would open soon.
There will be two sources of funding in round two of the Jobs Fund:
- $51.9 million from the Local Jobs stream, negotiated with the Greens, for the promotion of green technology, heritage and environment friendly projects; and
- $41.4 million for the Get Communities Working stream, negotiated with Family First to support social enterprise to create self-sustaining social businesses.
The Government will release the guidelines for Round 2 soon, with details regarding the remaining funds in the Jobs Fund to be announced in the future.
Projects to be funded under both streams will need to ensure they are focused on local solutions in areas which have higher than average unemployment or are disadvantaged.
A copy of the report is found at: http://www.deewr.gov.au/keepaustraliaworking